In late 2021, the UK government proposed new changes to the Minimum Energy Efficient Standards (MEES) regulations that will require landlords to ensure their rental properties have an Energy Performance Certificate (EPC) rating of at least C by 2025, with existing tenancies given until 2028 to comply. These changes are being implemented to align with the government’s target of net-zero carbon emissions by 2050.
But what exactly is an EPC rating, and how will these changes impact landlords and homeowners? In this article, we will discuss the new EPC laws, how they affect landlords and homeowners, and how Express Windows Group can help people achieve the required EPC rating.
Understanding EPC Ratings
An EPC rating is a measure of a property’s energy efficiency on a scale of A-G, with A being the most efficient and G the least. The rating takes into account factors such as insulation, heating, lighting, and ventilation. A higher rating means a property is more energy-efficient, resulting in lower energy bills and a reduced carbon footprint.
EPC ratings were first introduced in 2007 and are used in England and Wales to judge a property’s energy efficiency. Landlords are required to provide tenants with an EPC rating, and the rating must be updated every 10 years.
New EPC Laws for Landlords
Under the new MEES regulations, landlords of privately tenanted properties will need to ensure their rental properties have an EPC rating of at least C to continue taking on new tenants. Properties that score less than a C in an energy performance survey will not be allowed to let from 2025 onwards.
Landlords with a domestic rental property that falls within the current legal threshold of an EPC E or above will still be able to continue letting the property out if the existing tenancy in place predates the new EPC laws coming into effect. Landlords may legally continue to rent their property until 2028, providing it is to the same tenant, even if the property falls below the new EPC C minimum threshold in 2025.
Impact on Landlords and Homeowners
The new EPC laws will likely result in properties rated below EPC C becoming less desirable to tenants and future buyers. Research by NatWest and S&P Global revealed that 40% of future homebuyers consider the EPC rating ‘very important.’ Improving the energy efficiency of a rental property can boost its value by up to 20% and increase its desirability among tenants and future buyers.
However, retrofitting homes to bring them up to the new EPC C minimum is unlikely to be cheap. According to an analysis by Savills, the average D-rated property would need on average £12,746 spent to reach a C band. The cost of upgrading a home from an E to C rating is over £17,000, while the cost of transitioning from G rating to C is estimated to be nearly £27,000.
The new EPC laws will have a significant impact on landlords and homeowners, as they will need to ensure their properties meet the new energy efficiency standards to comply with the regulations. Landlords will need to invest in energy-efficient improvements to their rental properties to achieve the required EPC rating of at least C. Homeowners may also need to consider upgrading their properties to improve their energy efficiency, as the government may introduce similar regulations for owner-occupied properties in the future.
At Express Windows Group, we offer a range of energy-efficient home improvement solutions to help landlords and homeowners achieve the required EPC rating. Our products and services can help reduce energy consumption, lower energy bills, and improve the overall value of your property.
The new EPC laws are a necessary step towards achieving the government’s net-zero carbon target. While they may require significant investment, they also offer long-term benefits for both landlords and homeowners. By working with Express Windows Group, you can ensure that your property meets the required EPC rating and remains compliant with the new regulations.